Voetstoots vs. Property Disclosure: What Sellers Need to Know

Helping You Learn What Sellers Need to Know

In South Africa, the principle of voetstoots in property sales has been a long-standing practice. However, with the introduction of mandatory property disclosure forms and the Consumer Protection Act (CPA), the landscape has seen significant changes. Here’s a breakdown of what sellers need to know:

What is Voetstoots?

Voetstoots, meaning "sold as is," has traditionally protected sellers from liability for any defects in the property post-sale. However, this doesn't give sellers free rein. They cannot deliberately conceal defects or mislead buyers about the property’s condition.

“Voetstoots, meaning “sold as is,””

Patent vs. Latent Defects

Patent defects are those that are visible or easily discoverable. Sellers aren't obliged to disclose these, as buyers are expected to spot them during inspections.

Latent defects, on the other hand, are hidden or not easily discoverable. Sellers who are aware of these defects must disclose them. Failure to do so can lead to legal challenges, especially if it’s proven that the seller deliberately concealed these defects to defraud the buyer.

Mandatory Disclosure Form

The Property Practitioners Act introduced the mandatory disclosure form, which made a shift towards greater transparency. Sellers must now complete a form detailing all known defects of the property. This form has to be presented to the buyer before the sale agreement is concluded.

Consumer Protection Act (CPA)

The CPA further refines the voetstoots principle, particularly for sellers acting in the ordinary course of business, such as property developers. It mandates that goods must be of good quality and free from defects, which can override the voetstoots clause.

Implications for Sellers

Sellers must be thorough and honest when disclosing any information about the property’s condition. Omitting or providing inaccurate information can lead to legal consequences. It’s also crucial to ensure that all necessary signatures are obtained on the disclosure form.

Conclusion

While voetstoots still has a place in property law, its application is now significantly curtailed by disclosure obligations and consumer protection laws. Sellers need to be transparent about property defects and ensure they comply with all disclosure requirements to avoid future legal issues.

For more detailed advice or specific queries, it’s advisable to consult with legal professionals at Christine Schutte Attorneys Inc., where we prioritize clear, honest communication and tailored legal solutions.